The post Polkadot: Can DOT now rally to $6.5 after a prolonged downtrend? appeared on BitcoinEthereumNews.com.

Polkadot’s breakout from a falling wedge pattern hints at a bullish reversal, aiming for $6.5. Strong technical indicators, rising social interest support DOT’s upward momentum. Polkadot [DOT] has recently broken out of a long-standing falling wedge pattern, suggesting a bullish reversal after a prolonged downtrend. Consequently, optimism is building around the potential for a strong rally, with key resistance levels and an ambitious price target in sight.  DOT trades at $4.28 at press time, reflecting a 4.98% increase over the past day. Additionally, the market cap has risen to $6.49 billion, signaling growing investor interest, while 24-hour trading volume has jumped by 7% to $245.96 million. This uptick in volume and price suggests that the breakout is gaining attention and could potentially set Polkadot up for significant upside if it holds above critical levels. Chart analysis: Key resistance and possible target for DOT Breaking out of a falling wedge pattern, DOT has surged past a long-held descending trendline, which had acted as resistance since early 2024. However, the crucial resistance level lies just above the current trading price, around $4.939.  Should DOT clear this level, it could set its sights on the possible target of $6.541, representing a potential 49.83% gain from its breakout point. Therefore, if Polkadot maintains its current upward momentum and establishes support above $4.939, the potential for reaching $6.5 becomes more plausible.  Source: TradingView Technical indicators: Moving averages and low volatility favor bulls DOT’s daily chart recently displayed a bullish moving average (MA) cross between the 9-day and 21-day MAs, typically a reliable signal of an upward trend. This MA cross, therefore, aligns with the breakout pattern, strengthening the bullish outlook for DOT. Such a cross often attracts further buying interest, adding fuel to the recent rally. The current Average True Range (ATR) for DOT stands…

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Filed under: News - @ November 9, 2024 5:06 am